People hold Palestinian flags as supporters of Iraqi Shiite armed groups gather during a protest against the US for supporting Israel, in Najaf, Iraq. Reuters
People hold Palestinian flags as supporters of Iraqi Shiite armed groups gather during a protest against the US for supporting Israel, in Najaf, Iraq. Reuters
People hold Palestinian flags as supporters of Iraqi Shiite armed groups gather during a protest against the US for supporting Israel, in Najaf, Iraq. Reuters
People hold Palestinian flags as supporters of Iraqi Shiite armed groups gather during a protest against the US for supporting Israel, in Najaf, Iraq. Reuters

Iraqi government rejects Tehran-allied militia attacks against US troops


Sinan Mahmoud
  • English
  • Arabic

Iraqi Prime Minister Mohammed Shia Al Sudani has ordered security forces to clamp down on rogue militias linked to Iran, who have launched a wave of attacks on US forces who are training the official army.

Security forces must “pursue the perpetrators of these attacks and not allowing under any circumstances any harm to security and stability,” he said on Monday.

Under the country's 2005 constitution, Iraq's prime minister is the commander in chief of the armed forces, but military power remains spread between powerful armed groups with differing political loyalties.

Tehran-allied militias began a surge of attacks on bases hosting US troops with drones and missiles last week, while pledging support for Hamas, which launched a massive surprise attack on Israel on October 7, killing 1,400, mostly civilians, and triggering Israeli bombing raids in Gaza, killing nearly 5,000, also mainly civilians.

Attacks have hit Ain Al Asad in western Iraq, a military base near Baghdad's international airport and Harir in the northern Iraqi city of Erbil.

The militias say they are going after American troops because of Washington's support for Israel in its war with Hamas, a Palestinian armed group formed in the late 1980s, which was later backed by Iran. The Iraqi military, which owns the bases, has condemned the attacks, which have in the past killed and wounded Iraqi soldiers, as well as US personnel.

“We confirm our rejection of the attacks that target Iraqi bases which include the headquarters of international coalition advisers,” Iraqi military spokesman Yahya Rasool said.

Those troops, he said, are in Iraq “upon an invitation from the Iraqi government to continue their work in supporting our security forces through training and consultancy”.

Their presence is “based on a clear mechanism endorsed by the official and diplomatic channels and there can be no compromise on the security and safety of those forces”.

Mr Al Sudani, who took office in October 2022, was the nominee of the Iran-aligned Co-ordination Framework, the largest political group in the Iraqi parliament with 138 out of 329 seats. The group comprises powerful Iran-backed Shiite militias and political parties.

Boost relations

Since then, Washington has grown increasingly worried over the power of the Shiite militias. It has been pressing Iraq to introduce reforms mainly economic, urging it to boost relations with its neighbours to counter Iran's influence.

Iraq is caught in the middle of US-Iran rivalry and regional tensions, particularly due to its diplomatic and geographic closeness to Iran.

It is unlikely that the government position will change the reality on the ground, Hadi Jalo Marie, chairman of the Political Decision think tank in Baghdad, told The National.

“I can’t see any impact for the government statement on the armed factions because their ideology is different from the government one and this was the case with previous governments,” Mr Marie said.

“There are always two parallel lines: The official Iraqi one which has understandings with the US and the other Iraq which opposes the American presence,” he added.

Previous governments, mainly the last one led by the pro-US prime minister Mustafa Al Kadhimi, tried to rein in the influence of the Iran-backed militias but failed.

On different occasions, Mr Al Kadhimi’s government arrested a number of militiamen accused on firing rockets on the US embassy and troops or seen behind killing pro-democracy activists but were later released under pressure.

There are about 2,500 US troops still in Iraq on an advisory and training mission, but their presence remains controversial.

After defeating ISIS, Iran-backed Shiite militias and Tehran have called for the withdrawal of US troops from Iraq.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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TEACHERS' PAY - WHAT YOU NEED TO KNOW

Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:

- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools

- average salary across curriculums and skill levels is about Dh10,000, recruiters say

- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

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Updated: October 23, 2023, 12:47 PM